ANTI-counterfeiting measures supplier Applied Optical Technologies has seen its operating profits increase to £232,000 in the first six months of the year.

The business, in Washington, Wearside, has won numerous new contracts in the first half of the year, including merchandise protection work for the 2004 Olympic Games and product protection for the PGA Golf Tour.

Turnover was £15.2m - the same as the first half of 2000. Applied balance sheet, however, remains strong, with a bank balance of £1.8m.

Chairman David Mahony, said: "The world economic situation post the tragic events of September 11 continues to be of concern, but there are grounds for believing that the group will, in due course, see benefits from a climate in which there is an enhanced appreciation of the need for security and a greater willingness to bear the costs this necessarily imposes."

"Following the difficulties of the recent past the board believes that future prospects are encouraging but again cautions that the full benefits of the actions we are currently taking will not be felt until the next financial year."

Despite the effects on the world economy of the events of September 11, the company remains positive about its prospects for the second half.